Chapter 07 Bba Hrm
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Transcript of Chapter 07 Bba Hrm
Chapter 07
Understanding Labor Relations and Collective Bargaining
Suggested Level: Chapter 14, HRM by Decenzo and Robins
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 2
Introduction
a union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining
only a small number of private sector organizations are unionized. Whereas the ration of unions is more in public organizations.
labor unions normally negotiate on: wages hours terms and conditions of employment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 3
Why Employees Join Unions
According to the International Labour Organization (ILO) laws, labour working in an organization have a right to form a union by following the legal provisions available according to the law of land.
higher wages and benefits: the strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals
greater job security: collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire
influence over work rules: unions represent workers and define channels for complaints and concerns
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 4
Why Employees Join Unions
union shops require that all employees hired into positions covered under the collective-bargaining agreement must join the union
agency shops require nonunion employees to pay an amount equal to union fees and dues to the certified bargaining unit even if they choose not to join a union.
open shops employees are free to join the union or not and those who decline need not to pay the union fee.
maintenance of membership requires an individual who chooses to join a union to remain in the union for the duration of the existing contract.
Union Membership
dues checkoff requires the employers to withhold union dues from member’s paychecks.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 5
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 6
Certification of bargaining unit
Unionizing Employees
Union Organizing Process
Are authorization cards in order?
Vote taken: Did union receive a majority vote?
Authorization card campaign: Did union get 30% or more?
Unorganized
No
No
uni
on v
ote
for
one
yea
r
Yes
No
No
Yes
Yes
Union Organizing ProcessAuthorization Cards: A card signed by the prospective
union members indicating that they are interested in having a union election held at their work site.
Representation Certificate: Election process in which union members vote their union as their representative.
Representation Decertificate: Election process in which the union members vote their union as not their representative.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 7
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 8
Unionizing Employees
Employees want to form a union. Now what?
thirty percent of employees must sign authorization cards indicating their interest in having an election
with a representation certification (RC), a secret-ballot election is held
if the union is accepted by a majority of eligible voting workers, the union becomes the workers’ legal representative
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 9
Unionizing Employees
once the National Labor Relations Board certifies a union, each worker must abide by the negotiated contract
most organizations’ managements will try to influence workers against voting for union representation
representation decertification (RD) elections can be held to vote unions out
RMs are decertification elections initiated by management
most agreements oppose the use of decertification elections during the term of a contract
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 10
Collective Bargaining
the negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time
What is collective bargaining?
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 11
Collective Bargaining
contracts must be acceptable to management, union representatives, and union membership
four issues appear in all labor contracts;
Objective and Scope of Collective Bargaining
wages
grievanceprocedures
hours
terms and conditionsof employment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 12
Collective Bargaining
Collective Bargaining Participants
1. large corporations have HRM departments with industrial relations experts; corporate executives, and company lawyers also participate
2. in small companies, the president typically represents the company
3. union bargaining teams include an officer of the local union, local shop stewards, and reps from the international/ national union
4. government watches to ensure rules are followed5. financial institutions set limits on the cost of the contract
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 13
Collective Bargaining
Preparing to negotiate
fact-gathering: includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing)
goal-setting: identify the objectives of the process strategy development: this includes assessing the other
side’s power.
The Collective Bargaining Process
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 14
Collective Bargaining
The Collective Bargaining Process
Pre
pare
for
nex
t ne
gotia
tion
Preparation for negotiations
negotiation
Agreement
Unionratification
Contractadministration
yes
yes
no
no
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 15
Collective Bargaining
each side usually begins by publicly demanding more than they are willing to accept
more realistic assessments and compromises take place behind closed doors
after oral agreement, a written contract is submitted to the union for ratification
Negotiating at the bargaining table
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 16
Collective Bargaining
1. information dissemination: helping the workers understand the new contract provisions
2. implementation: making the changes to comply with contract terms
3. interpreting the contract and grievance resolution
4. monitoring activities during contract period
Contract administration is the implementation, interpretation, and monitoring of the negotiated contract between labor and management.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 17
Collective Bargaining
Negotiations Outcomes
Negotiations have only two possible outcomes;
1.Agreement (proffered)
2.Strikes or Lock out
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 18
economic strikes - labor and management cannot reach agreement, the union leadership advises its members not to work and to leave their jobs.
wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract
lockouts - when organizations deny unionized workers access to their jobs during an impasse
Failure to Reach Agreement Strikes versus Lockouts
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 19
Collective Bargaining
Impasse-Resolution Techniques used when labor and management cannot agree
conciliation and mediation involve a third party to either keep negotiations going or make nonbinding settlement recommendations
fact-finding involves a neutral third party who conducts a hearing and recommends a nonbinding settlement
interest arbitration Involves a panel of one neutral, one management, and one union representative who hear testimony and render a decision to settle a contract negotiation dispute
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 20
Critical Issues for Unions Today
Where have the union members gone?
Reasons for decline in membership include:
1. greater diversity of the workforce
2. growth of the service sector
3. diminished financial resources of unions
4. anti-union pressures resulting from increased
competitiveness
5. layoffs of large numbers of union workers
6. hiring of replacement workers for strikers